Biocon Prepares for Challenges Amid US Tariff Proposals

Biocon, a leading biotechnology company, is bracing for potential hurdles as the US government considers imposing tariffs on pharmaceutical imports. The company highlights that such measures could not only squeeze profit margins but also disrupt the supply of affordable generic medicines to American patients.

Impact on Biocon's US Market Dominance

The US stands as Biocon's largest market, accounting for a substantial portion of its sales. Despite this, the majority of Biocon's products are manufactured outside the US, with only two facilities located within the country.

CEO Siddharth Mittal Weighs In

Biocon CEO Siddharth Mittal expressed concerns over the proposed tariffs, noting the final impact hinges on several factors, including the tariff rate and market competition. "High-margin products might allow for cost pass-through, whereas others could force manufacturers to absorb the impact," Mittal explained.

Exploring Growth in Other Regions

In response to these challenges, Biocon is eyeing expansion in other markets, with Europe identified as a key growth area, already contributing 35% to the company's revenues.